Dixon Tech, Kaynes Tech, Cyient DLM: EMS stocks surge on ₹1.9L cr semiconductor, mobile manufacturing boost
Indian electronics manufacturing stocks surged following the government's approval of a ₹1.9 lakh crore investment package for semiconductor and mobile phone production. The initiative aims to establish India as a global hub for electronics by incentivizing domestic chip design and manufacturing.
Why it matters
This represents a major shift in global supply chain strategy, positioning India as a significant competitor in the semiconductor and electronics manufacturing sector.
The rally came after the Union Cabinet on Wednesday approved two major manufacturing initiatives with a combined outlay of nearly ₹1.9 lakh crore ($22 billion).
Shares of electronics manufacturing services (EMS) companies such as Dixon Technologies, Kaynes Technology, Syrma SGS Technology, Cyient DLM, and PG Electroplast, among others, traded in the green on Thursday, July 16, with Dixon Technologies leading the gains.
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The measures aim to expand India's semiconductor ecosystem, scale up mobile phone production and strengthen the country's position as a global electronics manufacturing hub.
The government approved the ₹1.27 lakh crore ($14.6 billion) Semicon 2.0 programme to accelerate semiconductor design and manufacturing capabilities, alongside the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) aimed at increasing domestic production, boosting exports and deepening local value addition in the mobile phone industry.
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